Yes it is possible and again creating a whole new world for those lawyers out there. Check out this article on CNN this past Friday.
http://www.cnn.com/2008/TECH/06/13/citizen.journalism.ap/index.html
I have heard of companies trying to sue their employees for employees blogging such as this case from Cisco.
http://gigaom.com/2008/03/24/cisco-sued-because-of-employee-blogging/
But I did not think anything was coming from these cases. Freedom of speech, freedom of blogging etc. However this does not seem to be the case. How far will these court cases go?? Who exactly is being sued? Reporters for the false information? Employees for giving out company information and bad mouthing a company? I can see how companies would get upset, the groundswell etc. However how far will these law suits go? Can the Internet social media community really be stopped and scared off from communicating because of the law suits? I agree there are some bad people out there on line, just like any other community and bad news does spread fast.. but again can they really be controlled? It looks like companies like Media Blogger Associaiton are working on doing just that.. see below..
Robert Cox, president of the Media Bloggers Association, said more than 100 judgments valued at $17 million have been handed down against bloggers over the last three years — about 60 percent for defamation, 25 percent for copyright infringement and 10 percent involving privacy.
“It’s the tip of the iceberg,” Cox said. “Bloggers are being asked to write checks. The threats against bloggers are very real. The costs are very real.”